Is the non-refundable deposit paid by a Coffee News franchisee actually non-refundable, even in cases of termination due to breach?

| 17,500 | 17,500 | 17,500 | | | Total other assets | 101,919 | 153,842 | 158,658 | | | Total assets | | $ 192,103 | $ 259,196 | $ 277,059 |

13. BREACH, DEFAULT AND TERMINATION.

• 13.1 Breach by Franchisee. If Franchisee breaches or defaults under any provision of this Agreement, Franchisor shall have all rights and remedies permitted by law or equity, including, but not limited to, the right of termination. Any termination by Franchisor shall have no effect upon Franchisee's obligation to pay the non-refundable deposit due in accordance with subparagraph 2.1 (a) and/or Schedule A. The forfeiture by Franchisee of such non-refundable deposit in the case of termination shall be liquidated damages and not a penalty. For the purposes of this paragraph, a default or breach shall include, but not be limited to, the following:
• (a) Unlicensed Distribution. The printing or distribution of unlicensed or unauthorized issues of the Periodical, either hardcopies or digital versions.
• (b) Similar Publication. The printing, distribution or participation in, directly or indirectly, any publication of a similar type to the Periodical.
• (c) Insolvency. The insolvency, bankruptcy or placement in receivership of Franchisee.
• (d) Criminal Offenses. The conviction of Franchisee or its principal shareholder with a major criminal offense which, by its nature and by the potential long-term imprisonment threatened, would result in serious damage to the reputation of the Periodical or the effective business operation of Franchisor.
• (e) Attachment or Seizure. Attachment or seizure of any of Franchisee's assets, provided Franchisor is certain that such seizure or attachment is an extreme threat to the continued successful operation of the exclusive license.
• (f) Nonpayment. Failure to pay when due the deposit payments, due in accordance with subparagraph 2.1 (a) and/or Schedule A, or weekly fees, due in accordance with subparagraph 2.1(b) and/or Schedule A, for sixty (60) consecutive days whether or not Franchisor has advised Franchisee in writing of such failure.
• (g) Mental Incompetency. The mental incompetency of Franchisee, its operator or principal shareholder.

• (h) Breach or Default. The Breach or default by Franchisee under any other contract or agreement between Franchisee and Franchisor.
• (i) Lack of Communication. The Franchisee has not communicated with Franchisor within 10 weeks of Franchisor's three (3) attempts of contact via phone, email or such other reasonable methods.
  • (j) Others. Failure to comply with any requirements of this Agreement.
• 13.2 Nonwaiver by Franchisor. Neither Franchisor's waiver of a breach or default by Franchisee, nor delay or failure to exercise any right upon breach or default, nor acceptance of any payment, shall be deemed a waiver nor shall the same impair rights for other breaches or defaults of the same or a different kind. The description of any breach or default in any notice shall not preclude the later assertion of other additional defaults or breaches.
• 13.3 Termination By Franchisee. Franchisee shall have the right to terminate this Agreement by providing Franchisor with written notice to Franchisor one hundred twenty (120) days prior to the effective date of such termination. Franchisee shall have the right to terminate this Agreement within the Initial Period covered by the non-refundable deposit, in which case the non-refundable deposit shall be forfeited to Franchisor as liquidated damages and not as a penalty. Any termination by Franchisee shall have no effect upon Franchisee's obligation to pay the non-refundable deposit due in accordance with subparagraph 2.1(a) and/or Schedule A.

14.

Source: Item 23 — Receipts (FDD pages 36–118)